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Sundaram Alternates SISOP

Scheme Rating

IME Scheme Rating

3 of 5 stars

Reasonable Investment Option: Can be considered for investors seeking a concentrated Large & Mid-cap portfolio, with a proven long-term track record.

IME Strategy Rating

3 of 5 stars

Concentrated Large & Mid-cap Strategy: Sundaram SISOP (Sundaram India Secular Opportunities Portfolio) is a multi-cap (skewed towards large-cap), concentrated (~15 stocks), and sector-agnostic portfolio. At the scheme level, the strategy is quite tightly defined with clear concentration, style & fundamental benchmarks that are being followed. Strategy bias towards large-cap, but there is a reasonably high concentration in mid-caps (reflected in the core skills of Sundaram AMC). The strategy has matured successfully by investing in businesses with a large and mid-cap bias, capitalizing on their secular growth opportunities.

PMS Scheme Ratings are driven by IME’s Proprietary Scheme Rating Methodology, which takes into account our ratings of the Scheme’s investment strategy, its maturity, the investment team, and our separate rating on the AMC that runs this particular scheme. Our views on each of these individual criteria are available via the IME RMS – which you can view by reaching out to one of our relationship managers (using either the live chat or book appointment feature on this site).

IME View on Sundaram Alternates SISOP

Type: Large & Midcap | GARP | AUM (1101.2 cr) | Inc Date (1 February 2010)

Focused on sector agnostic portfolio and looking for companies with compounding stories

Sundaram SISOP aims to generate capital appreciation across market cycles by investing in a concentrated portfolio of around 15 stocks by following its “3Q” approach to stock selection:

  • Quality of business: Scalability, self-sustaining business models, Differentiating factors in business
  • Quality of financials: Ability to double earnings in 4-5 years, min-ROIC of 15%, OCF/EBITDA>50%, D/E< 0.5x.
  • Quality of Management: Track record, vision, high sustainable growth, identifying and investing in profitable opportunities, good corporate governance

Trailing Performance

1yr 3yr 5yr Since Inception
Sundaram Alternates SISOP 25.6 13.7 17.6 17.3
S&P BSE 500 TRI 39.5 19.5 19 13.6
Alpha over Broad Mkt BM -13.9 -5.8 -1.4 3.7
Nifty 500 38.4 18.1 17.5
Alpha over Category BM -12.8 -4.4 0.1

Performance as of: 28-Feb-23 | Inception Date: 01-Feb-10

Fund Managers

Madanagopal Ramu | 3-star rated FM

Fund Manager | 19 yrs Experience | 6 yrs at current firm

Past Experience: Centrum (Analyst), PFC (Project Finance)

Having joined Sundaram as a research analyst in 2010, Madangopal went on to become the Head of Research and co-manager of a number of the Sundaram AMC funds. He joined the PMS division in 2018.

Fee Structure

Fee StructureFee
Fixed Fee Structure2.5
Variable Fee Structures2.5% fixed + 20% above 10% hurdle
Exit Fees1yr(1%)

AMC

AMC: Sundaram Alternates PMS (click link for detailed AMC review)

Not a top recommendation due to being an AMC-driven PMS: Sundaram Alternates PMS is a mature PMS provider and with a known specialisation in small-and-mid caps. While it is slightly more differentiated than some of its larger AMC-founded PMS peers, it does suffer from AMC-promoted PMS ailments (PMS as an add-on instead of a clearly segregated business unit, churn in the investment team, a lack of skin in the game for the CIO and typically loosely defined investment philosophies), which is why we typically prefer owner-managed PMS providers instead. However, it does have its own positives- (a) long-track records of core portfolios -- each of which has over a decade of performance (b) differentiation in terms of mid-and-small caps (c) more PMS-like strategies - higher concentrations & differentiated portfolios.

AMC Rating

3 of 5 stars

AMC Pedigree

3 of 5 stars

AMC Size

4 of 5 stars

Team Pedigree

2 of 5 stars

Inv Philosophy

3 of 5 stars

Performance

3 of 5 stars

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